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India going to WTO against US to withdraw import discount

USNMix Report: India will
give strong message to the United States, considering going to WTO for withdrawal of the
import exemption.

India exports US $ 5.6
billion worth of goods under GSP.

India is considering various
options including challenging it in the World Trade Organization (WTO) to deal
with America's decision to eliminate the benefits of concessional import duty
on its 2,000 items. These items from India were entered on the concessional fee
of 0-6 percent in the US. Sources said that the government could also choose to
give financial support to areas affected by the US decision-making and
retaliate duty on US goods.

It is worth noting that on
Tuesday, the United States has decided to withdraw the benefit of subsidized
import duty to India under the Generalized System of Preferences (GSP) program to prioritize
business for the benefit of developing countries. This decision could affect
the country's exports of 5.6 billion dollars Removing profits means that the US
will charge a higher fee for 2,000 products, which will not be competitive in
the US market in terms of price.

However, another source said
that the process can be extended in the WTO process and the best option is to
resolve this issue with bilateral talks, because India's exports to the
business with the US are more than imports. Going to India's WTO Dispute
Settlement Body will depend on whether the US, India is not separating and
discriminating between the developing countries. India exports US $ 5.6 billion
worth of goods under GSP, out of which only $ 1.9 million worth of goods come
in the category without any fee.

Earlier, the US President
had offered India a major setback to discontinue trade discounts. Trump on
Tuesday told the US Congress about abolishing GSP with India. He wrote a letter
to the speaker of the American Parliament and said that America will eliminate
the status of India's debt free country. In this order, Trump had said on
Saturday that India is a country charging at a high rate.